Question 17

Assume a company's Income Statement for Year 12 is as follows: Income Statement Data Net Revenues from Footwear Sales $ 560,000 Cost of Pairs Sold 340,000 Warehouse Expenses 45,000 Marketing Expenses 85,000 Administrative Expenses 15,000 Operating Profit (Loss) 75,000 Interest Income (Expense) (25,000) Pre-tax Profit (Loss) 50,000 Income Taxes 15,000 Net Profit Loss $ 35,000 Based on the above income statement data and the formula for calculating the interest coverage ratio presented on the Help section for p. 5 of the Footwear Industry Report, the company's interest coverage ratio is r\". 4.00. .55, 3.00. .55, 2.00. .93. 22.4. .6. 1.40